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CAFX Market Update 12/09/2022

Welcome to our daily market update where we help keep you informed on the latest happenings in the world of FX and show you what this means for the Mighty Aussie Dollar.
If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com

Key Data Being Released Today

United Kingdom     – GDP (MoM)
Industrial Production (MoM) (Jul)
Manufacturing Production (MoM) (Jul)
Trade Balance (Jul)

Macro Report

With the US Dollar Index (DXY) down 0.16% at the time of writing, the Euro lifted above parity while the Aussie dollar also managed to cross above the 68-cent level.

In focus this week is the US Consumer Price Index (CPI). Tomorrow’s CPI data is expected to show an 8% increase in the overall consumer price index from the same month last year. While dropping from a print of 8.5% the prior month, the US CPI figure remains elevated historically. Removing food and energy prices, markets predict an increase in Core CPI from a previous print of 5.9% to 6.1%. With a fall in CPI primarily owed to lower energy prices and inflation remaining well above the central bank’s target, the Fed Officials will likely remain firm on implementing a 75-basis point rate hike in September.

As market participants increased bets for a steep 75-basis point hike in the next Fed meeting, 10-year treasury yields lifted further, currently sitting just above the 3.3% level.

Meanwhile, in Australia, the Australia Bureau of Statistics (ABS) will report August employment data on Thursday.

AUD/USD Daily Chart

DXY (USD INDEX) Daily Chart

Major Global Markets 

Currencies Level Change (%)
AUD/USD 0.6845  0.06
AUD/JPY 97.6670  0.09
AUD/CNH 4.7379 -0.07
DXY 108.8270 -0.16
Rates Yield (%) Change
US 10 Year 3.31 0.029
Aus 10 Year 3.54 0.024
Equities Level Change (%)
S&P 500 4,067.36  1.53
NASDAQ 12,112.31  2.11
ASX 200 6,894.20  0.66
Commodities Level Change (%)
Iron Ore 104.50  2.95
Gold 1,728.80  0.01
Brent Crude oil 92.74 -0.11